March Jobs

The Bureau of Labor Statistics’ jobs report for March was released last Friday.

On the good news side:

  • 88,000 new jobs were created
  • the unemployment rate fell to 7.6%

On the bad news side:

  • 88,000 new jobs were created against a monthly average of 169,000 new jobs per month over the prior 12 months and against an expectation of 192,000 new jobs for March
    • the unemployment rate fell to 7.6% because the civilian labor force declined by 496,000 Americans
    • that’s 5 times as many Americans giving up and leaving the work force as found new jobs
    • the labor force participation rate decreased by 0.2 percentage point to 63.3%
    • the 63.3% labor force participation rate is the lowest since 1978
    • the long-term unemployed (jobless for 27+ weeks) numbered 4.6 million, 39.6% of the unemployed
    • 11.7 million workers who wanted a job remained out of work in March

This graph illustrates the failed recovery in which we remain mired; it’s an oft-repeated one, but the story it tells just keeps getting worse.  

As the graph shows, the decrease began about the time of the dot-com bubble burst, but the incipient recovery at the end of the Bush the Younger administration has been utterly cancelled, and the rate of decrease in participation has only accelerated since the Panic of 2008 and throughout the present failure.

It’s Bad

…when the court pokes fun at a case.

In Bayou Lawn, et al., v Department of Labor, Bayou Lawn, the Chamber Of Commerce of the United States of America, the National Hispanic Landscape Alliance, the Silvicultural Management Associates, Inc., and the Professional Landcare Network, among others, objected to a number of wage rules and bureaucratic requirements related to the H-2B visa program that had been promulgated by DoL.  Among other things, these groups doubted DoL’s authority even to write such rules.

Nor were DoL’s rules insubstantial:

These rules would decrease the maximum number of months an employer may employ an H-2B worker from ten to nine; require employers to guarantee that H-2B employees will work at least seventy-five percent of the hours certified in any twelve-week period and, if not, pay the employees the difference for the time not worked; require employers to pay non H-2B workers’ wages and benefits at least equal to those paid to H-2B workers if the two perform “substantially the same work;” require employers to pay for the round-trip airfare and subsistence costs of H-2B workers; and impose additional bureaucratic requirements, such as the filing of job orders, performing extensive domestic recruitment, and applying for a temporary labor certification.

A Federal court in Florida agreed and enjoined DoL from enforcing its rules.  DoL appealed, even while conceding that it had no actual authority for promulgating these rules [emphasis in the original]:

The DOL does not dispute that it has no express authority to make rules for the H-2B program.

Rather, DoL argued in all seriousness,

DOL counters that its authority may be inferred from the “statutory scheme [that] shows a Congressional intention to grant [it] rulemaking power.”

And here is the scheme that DoL argued [emphasis still in the original]:

[Federal law] instructs the Secretary of DHS to consult with the “appropriate agencies of the Government” in resolving whether to grant a foreign worker a visa upon the “petition of the importing employer.”  Although there is no grant of rulemaking authority to DOL in this statutory section, DOL asserts that as the result of the permission it grants to DHS to consult with it, DOL “has authority to issue legislative rules to structure its consultation with DHS.”  The end result, in DOL’s view, is that it is empowered to engage in rulemaking, even without the DHS.

The 11th Circuit thought this pseudo-reasoning…foolish.

We reject this interpretation of “consultation.”  Under this theory of consultation, any federal employee with whom the Secretary of DHS deigns to consult would then have the “authority to issue legislative rules to structure [his] consultation with DHS.”  This is an absurd reading of the statute and we decline to adopt it.

DOL was designated a consultant.  It cannot bootstrap that supporting role into a co-equal one.

DOL next argues that the “text, structure and object” of the INA evidence a congressional intent that DOL should exercise rulemaking authority over the H-2B program. This would be a more appealing argument if Congress had not expressly delegated that authority to a different agency.

And so on.

Just what is the competence level in this administration?

The 11th‘s ruling can be read here and here.

 

h/t Law Blog

The Party of Stupid

New York Branch.

As the quid pro quo for agreeing to Governor Andrew Cuomo’s demand for his higher minimum wage, the New York Senate Republicans browbeat him into accepting a tax credit for businesses who hire at that new minimum wage.

Leaving aside the anti-hiring outcomes of minimum wage increases, as a result of this foot-shooting everyone in New York now gets to pay a piece of that higher wage, not just the businesses and their customers.

Brilliant, guys.

Some Questions about the Labor-Chamber of Commerce Accord on Immigrant Labor

Over the last few days, Big Labor and Big Business have reached a working agreement on one the last (apparently) sticking points in the immigration reform idea being worked by the Immigration Gang of Eight in the Senate.  This agreement, which centers on low-skill “guest workers,” has the following outlines.  These guest workers

  • would be paid the higher of the prevailing industry wage as determined by the Labor Department or the actual employer wage
  • would be allowed to pursue a path to citizenship and to change jobs after they arrived in the United States

Moreover, the visas

  • would be issued under a W Visa program that would start at 20,000 visas, rise to 35,000 visas in the second year, 55,000 in the third, and 75,000 in the fourth.  In the fifth year, the program would expand or shrink based on the unemployment rate, the ratio of job openings to unemployed workers and various other factors.  A maximum of 200,000 guest visas would be granted each year after the fourth, with a maximum of 15,000 visas per year for some construction occupations
  • although low-skilled construction workers would be included, trades like crane operators and electricians would be explicitly excluded
  • one third of all visas available in any given year would go to businesses with fewer than 25 employees

Richard Trumka, President of the AFL-CIO, says of this agreement

We have created a new model, a modern visa system that includes both a bureau to collect and analyze labor market data, as well as significant worker protections.

I have a number of questions about this.

  • Why do we need another government bureaucracy to assess this program and to determine the allowed limits—and wages—to the expanding and contracting visa program?  Why not let the free market determine the demand for labor?
  • Why do we need a minimum wage—which suppresses hiring?  Why not let the market for those low skills determine the wages paid?
  • Why does this guest worker program need a special path to citizenship?  If the immigrants are here legally, and if they’re allowed to stay and to change jobs, they already have the existing citizenship path that any other legal immigrant has.
  • Why do we need a quota on visas?  If the end game is to let the program expand or shrink based all those government-assessed factors, why not, instead, let it expand or shrink more responsively and efficiently based on market factors: demand for labor as driven by demand from consumers and businesses for the product on which that labor will work?

To abuse an old sitcom’s tag line: hold it.  I don’t think you’ll like this picture.

More Obama Sequester in Action

A few of items.

Congressman Ted Poe (R, TX) is wondering about sequester cuts to tuition aid for our military veterans while we continue to send education aid to Pakistan.  The Marines, for instance, had spent $47 million tuition aid in 2012, while nearly $13 million went to Pakistan for “higher education.”  And then, post-sequester, the Obama administration committed another $37 million to the Pakistan program.

Hmm….

And there’s this example of Obama cynicism.  Recall that the US Department of Agriculture would be forced to “furlough” a significant portion of its meat inspectors, among other personnel.  In the meantime, though, and again post-sequester, the Obama administration

continues to pursue a “partnership” with the Mexican government to “raise awareness” about food stamps among immigrants from that country.

In complete disregard for current immigration law that says immigrants can’t come in unless they are, or can reasonably be expected to be, self-supporting.

And this:

School officials on Native American reservations across Minnesota are forced into making cuts to their current budgets in anticipation of sequester cuts.  These  are programs that had been making progress, improving high school graduation rates by the small, but concrete, 3% per year.

But in post-sequester DC, a six-figure income position was created for a former aide to Congressman Charles Rangel (D, NY) with the important title of Executive Director of the White House Initiative on Educational Excellence for African-Americans.

Apparently some uses for post-sequester money are more important than others.  Especially when there’s political gain to be had.